Literature Review on Transformational Leadership and Organizational Commitment on Employee Performance in Iraq’s Banking Sector

Abstract

The review of the current body of literature demonstrates that transformative leadership does have an impact on both employee commitment and performance. Nevertheless, prior research has not thoroughly investigated the processes by which this impact takes place, and which dimension has an effect on employee commitment and performance. Hence, the objective of this study is to investigate the effect of transformational leadership dimensions on organizational commitment and employee performance, specifically in the context of Iraq's foreign banks. The study also seeks to explore the mediating effect of organizational commitment on the relationship between transformational leadership dimensions and employee performance. A comprehensive analysis of the theoretical and practical literature, the study's findings demonstrated a positive correlation between transformative leadership dimensions and both organizational commitment and personnel performance. Moreover, the findings indicated that organizational commitment acts as a mediator in the connection between transformative leadership dimensions and employee performance. This study encompasses both theoretical and practical consequences, as well as limitations, suggestions, and directions for future research.